Marijuana ETFs are rushing to list on US exchanges after getting a green light from the Securities and Exchange Commission.
Provided that marijuana exchange traded funds can show an independent legal opinion that no holdings violate federal law, they can now list in the US, according to the SEC.
Until now, confusion about marijuana’s legal status has stopped Wall Street from participating too heavily in the industry. Although marijuana is legal in some states it remains illegal federally and some of the issues, particularly around federal banking law, are still being worked through.
Since April, five marijuana ETFs have listed, and they come in all different shapes and sizes: some are passive index-tracking funds, with the look and feel of an ETF; others have opted for active stock picking by industry gurus in an approach more characteristic of mutual funds.
Dave Nadig, managing director of ETF.com, says: “It feels like a greenfield opportunity, much like the dotcom stocks in the early 1990s. Investors feel like the Amazon of cannabis is going to come from somewhere.”
“[This] has caught investor attention in a way few things really do,” he adds. [Read more at Financial Times]
Your email address will not be published. Required fields are marked *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
Comment *
Notify me of follow-up comments by email.
Notify me of new posts by email.
Δ
Voters will now get to decide whether to legalize recreational marijuana in a state that has a well-established medical pot marketplace. When the Florida Supreme Court earlier this month approved a November referendum on…
The legal cannabis industry is thriving in the U.S., reaching its highest-ever number of jobs and sales, a new report shows. Vangst, a cannabis industry job platform, found that at…
Maine is the newest frontier for the illicit marijuana trade, with potentially hundreds of suspected unlicensed grow houses operating in the state, a CBS News investigation has found. It’s part…
Ten years ago this month, Iowa policymakers made it legal to use cannabis for certain medical treatment, marking the start of what would eventually become Iowa’s existing medical cannabidiol program.…